Digital electric vehicle financing platform Revfin raises Rs 100 cr in debt
Digital electric vehicle financing platform Revfin has raised Rs 100 crore of debt, which it plans to use to expand into new geographies to finance three-wheelers and foray into lending loans to two-wheelers in the e-commerce delivery space, according to a top company official.
It is seeking to enter states like Assam, Madhya Pradesh, Rajasthan and Punjab for financing electric three-wheelers as it aims to boost its revenue fivefold in the new financial year, up from at its current rate of Rs 12 crore per annum.
”We recently incurred a debt of just over Rs 100 crore. We want to use this debt to launch ourselves first in new geographical areas for the financing of electric three-wheelers. We want to enter states like Assam, Madhya Pradesh, Rajasthan, Punjab where our penetration is currently low,’ Revfin Services Pvt Ltd Founder and CEO Sameer Aggarwal told PTI.
He further stated, “What we also want to do is be able to use this debt to do financing and leasing of electric two-wheelers, especially in the area of e-commerce delivery.” By September last year, the company had raised $4 million through equity, he said, adding that as a lending organization, “for us to grow, we have to leverage our balance sheet.” We did a fundraiser a few months ago and now we’re leveraging that equity to raise debt. It basically gives us a huge growth spurt, and then after that, we’ll do another capital raise. “The startup currently has a presence in 18 states with over 350 dealerships and has partnerships with multiple original equipment manufacturers (OEMs).
“From a market perspective, we already have a very high market share in states like Bihar, Uttarakhand, Jharkhand and Uttar Pradesh. We are looking to build market share in the states and we also want to create similar market share in multiple states,” added Aggarwal.
On the company’s plans to make a foray into financing electric two-wheelers, he said, “We’re focusing more on the business side.” We will grant the loans to people who operate under a fleet operator or under an e-commerce platform. ”Highlighting the opportunities in the segment, he said in the e-commerce and fleet operator space, most financing occurs at a wholesale level to the fleet operator, which is able raise funds from organizations to buy their own vehicles.
However, individual drivers are still not funded. Fleet operators generally like to keep their assets light, but at this point they have to buy the vehicles on their own balance sheet because no one is willing to finance the drivers directly.
”So from our perspective, this is the biggest opportunity that we can really seize and fund the drivers, who are supported by e-commerce platforms, in terms of providing them with employment and sufficient income, the generation of opportunities,” said Aggarwal.
Asked about the company’s revenue target, he said: ”Currently our revenue is around Rs 1 crore per month, which translates to a run rate of around Rs 12 crore ( a year). We expect that to increase about four to five times over the next fiscal year. ”Revfin said it has so far disbursed loans of up to Rs 50 crore with a repayment record of 95%.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)
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